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Archive for the ‘Audit Reports’ Category

It’s been nearly a year since we’ve written anything about the Louisiana State Board of Dentistry and while there appears to be little going on with the board, there is quite a bit of activity going on beneath that veneer of tranquility, including, apparently, an ongoing FBI audit of the board.

Despite the efforts of State Sen. Daniel Martiny (R-Metairie) who, in 2014 passed legislation to move the board’s headquarters from New Orleans to Baton Rouge, the board has continued to resist the move from its posh high-rent offices on Canal Street.

Our last story about the LSBD was last July. https://louisianavoice.com/2016/07/18/case-of-slidell-dentist-illustrates-unbridled-power-of-dentistry-board-to-destroy-careers-for-sake-of-money/

Apparently the FBI has taken an interest in the LSBD.

The AGENDA for a special March 10 meeting (a Friday, no less) of the board caught the eye of one of our regular readers, a dentist who was put through the board’s mill and ground into so much fodder a few years ago.

Buried on page three of the agenda, under the heading “New Business and any other business which may properly come before the board,” was item IX which said, “Discussion of FBI audit results (p. 50).”

We had no prior knowledge of any FBI audit, although we have been aware that the board’s former attorney is awaiting a disciplinary hearing before the Louisiana Attorney Disciplinary Board. https://louisianavoice.com/2015/11/16/dentistry-board-facing-difficult-future-because-of-policies-contracts-with-attorney-private-investigator-are-cancelled/

At the very bottom of page 3 was a call for an executive session “for the purpose of discussing investigations, adjudications, litigation and professional competency of individuals and staff; because discussion of these topics would have a detrimental effect on the bargaining and litigation position of the Louisiana State of Dentistry.”

It was unclear if the proposed closed-door session was related to the FBI audit or not.

LouisianaVoice will be making a public records request for that FBI audit report and we will publish our findings.

Meanwhile in his farewell address in the winter 2014 LSBD BULLETIN, outgoing President Dr. Wilton Guillory said, “Legislation was recently passed to move the Board’s domicile to Baton Rouge. If that legislation is not changed in the upcoming legislature as I hope, then the Board, who self generates its funds, will have to raise the license fees to fund the move. We have been able to prevent this in years past but will have no choice. We are working with the LDA (Louisiana Dentists Association) and legislators to try to prevent this unnecessary move.”

That self-generation of funds has been a bone of contention between the board and the dentists its disciplines. Because the board sets itself up as accuser, prosecutor and judge, dentists who appear on the board’s radar have little chance of prevailing in disputes.

That is, if they choose to dispute the board—and that’s a big “if” that carries high risks, as in high dollar risks. Often a token fine, if disputed, quickly becomes a five- or even a six-figure fine and more than one dentist has been run out of business by the sheer cost of defending himself from the board’s kangaroo court.

That’s why Martiny, when his own dentist fell into disfavor for a minor offense, took it upon himself to rein in the board by moving it from its Taj Mahal to more modest headquarters in Baton Rouge.

Thanks to State Reps. Robert Johnson (D-Marksville) and Frank Hoffman (R-West Monroe), Martiny’s efforts may be overturned before the move can even be implemented.

House Bill 521 by Johnson and Hoffman has been reported out of committee and is scheduled to be taken up for debate before the full House tomorrow (Wednesday, May 17). Simply put, the bill would amend Act 866 by Martiny, effectively negating that action, and allow the board to remain in either New Orleans or Jefferson Parish.

Hoffman has received $3000 from the Louisiana Dental Political Action Committee since 2011, $500 from Appel Dental, LLC in 2007, and an additional $500 from two individual dentists in 2007 and 2011.

Johnson, meanwhile, has received $6,250 from the Louisiana Dental PAC since 2011, and $500 from the Kid’s Dental Zone of Alexandria, LLC in 2015. He also received $500 each from the same two individual dentists as Hoffman.

We have documented several cases of the board’s heavy-handedness in dealing with dentists, its unscrupulous investigative methods, its dictatorial dealings with dentists and its exorbitant system of fines imposed in order to pay the rent on its office space and to pay its contract private investigator and attorney. We have also written about the legal troubles of that investigator.

Perhaps legislators might like to refresh their memories about the board before they vote on Wednesday. Here are links to just a few of our stories:

https://louisianavoice.com/2016/03/18/like-dental-board-louisiana-board-of-medical-examiners-survives-on-fines-and-incentive-to-punish/

https://louisianavoice.com/2015/04/16/13976/

https://louisianavoice.com/2016/07/07/dentistry-board-member-was-witness-in-earlier-case-now-he-also-decides-insurance-claims-benefits-paid-to-other-dentists/

https://louisianavoice.com/2015/04/15/remarks-by-former-head-of-state-dentistry-board-on-suit-dismissal-reopens-louisianavoice-investigation-of-tactics/

https://louisianavoice.com/2014/03/23/appeal-court-slams-lsdb-tactics-in-reversing-kangaroo-court-license-revocation-board-attorney-rules-on-his-own-objection/

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The Louisiana State Police Commission may have placed on its agenda for Thursday’s meeting an item to go into “executive session for discussion of professional competence” of commission Director Cathy Derbonne but an option that rests with Derbonne could put commission Chairman T.J. Doss behind the proverbial eight ball.

Doss is the State Police member on the commission. The remaining six members are appointed by the governor from each of the state’s Congressional districts.

Besides the item to enter into executive session, a separate item calls for “consideration of whether employment of the Director of State Police Commission should be continued or terminated.”

The entire proceeding, however could blow up in the faces of commissioners should Derbonne exercise her option to insist that all discussion be held in open session. Legally, she is entitled to make that call and if she does, there could be egg on the faces of Doss, Jared J Caruso-Riecke, et al.

In something of a plot twist, the web page of the State Police Commission was down briefly Wednesday night. Efforts to go onto the PAGE resulted in a message that the web address could not be accessed. The page was back online, however, after about 20 minutes.

Interestingly, the funneling of more than $40,000 in campaign contributions by the Louisiana State Troopers’ Association (LSTA) through its executive director produced only a sham of an investigation by a political ally of Gov. John Bel Edwards.

Natchitoches attorney and former State Sen. Taylor Townsend was hired under a $75,000 contract to “investigate” the contributions which were approved by the LSTA board of directors, comprised of state troopers, and laundered through LSTA Executive Director David Young. Young made the contributions, including $10,000 each to Bobby Jindal and Edwards, by writing checks on his personal account and then submitting expense invoices to the association.

Townsend, obviously taking his marching orders from up the food chain, declined to include as part of the evidence an audio recording of a meeting of troopers concerned about the contributions at which it was acknowledged that the LSTA violated the restrictions against state troopers becoming active in political campaigns, including making contributions. Townsend also failed to follow protocol in submitting a written report of his findings and instead, made only a verbal recommendation that “no action be taken.”

Townsend likewise has been silent on the issue of the manner in which commission members were appointed. When there is a vacancy, the commission chairman is required to notify the university president in that congressional district to solicit names for nominations from which list the governor makes his appointment.

Derbonne’s major transgression appears to be that she did her job, including notifying the governor’s office of the requirements for member appointments and of commission members who, like the LSTA, violated ethics rules by making political contributions while sitting on the board. Three members ultimately resigned because of that issue.

So, bottom line, what we have here is a failure to communicate (apologies to the late Strother Martin of Cool Hand Luke). An attorney who is a crony of the governor shirks his duty to the job for which he was contracted but still collects his fees and stands in good stead with the commission while Derbonne followed the dictates of her job and finds her job is on the line.

Way to go, guys. You should really feel good about yourselves. Eulis Simien, I really thought you had more integrity than to let yourself be manipulated by Doss and Edmonson.

Every time I hear Doss talk, I wonder how it feels to have Edmonson’s hand up his backside.

Calvin Braxton, you’ve already seen what can happen when you cross Mike Edmonson, but you’re going along with this fiasco anyway?

Monica J. Manzella, I’m really not that surprised; after all, you negotiate contracts with the State Police on behalf of the City of New Orleans. No conflict there.

Jared J Caruso-Riecke, Mike Edmonson obviously owns you.

Donald Breaux, we know where your loyalty lies with your special LSTA-1 license plate on your car.

You’re all a real piece of work.

How can Simien and Caruso-Riecke (appointed June 6) and Manzella (Oct. 11), who between them, have barely a year’s experience on the board, make any kind of intelligent judgment call as to the competence of Derbonne? The answer is, they can’t; they can only rely on the manipulations of Edmonson and Doss.

And that $75,000 investigation by Taylor Townsend only to get a verbal “I recommend no action.” It’s a damn good thing you weren’t heading up the investigation of the previous commission executive director DEBRA JOHNSON. Even the Office of Inspector General nailed her for felony theft, fraud, and malfeasance in office.

If anyone in this tragicomedy should be called to the carpet for misappropriation of funds, it should be Townsend. I could’ve done what he did for a measly five bucks and a beer from the bar run by LSTA over at the State Police training facility in Zachary.

We can only hope Derbonne will exercise her rights and make them do their dirty work out in the open for everyone to see.

And if you think firing a single employee—for no other reason that she insists on doing the right thing despite what Edmonson wants—will make your problems disappear, you’re so very wrong.

If you think LouisianaVoice has been a pain in the ass so far, you ain’t seen nothin’ yet.

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Okay, class, listen up. Today’s lesson is about a place called the Mount Weather Emergency Operations Center—so called because it originally was constructed as a weather station..

For the sake of simplicity (and because I’m too lazy to write it out every time) we will hereafter refer to it as M-WEOC.

If you are of my generation and you read the book or saw the 1964 movie Fail Safe, featuring Henry Fonda, Larry Hagman, Walter Matthau and Dom Deluise, among others, it  was called Mount Thunder, but the reference was obvious.

M-WEOC is a civilian command facility located in Virginia and is a major relocation site (read: a place to run and hide) for high-level (not you and me, noooo) civilian and military officials in the event of a national disaster so there may be a continuity of government. (Some—any—continuity of government would be pretty nice right now.)

The underground component—the bunker—contains 600,000 square feet. Following the 9-11 attacks, most of the congressional leadership (read: cowards) was evacuated to Mount Weather by helicopter. Being elected Speaker of the House does carry certain privileges.

The National Gallery of Art from 1979 to 1981 developed a plan to transport valuable paintings in its collection to Mount Weather via helicopter. (Are you kidding me?). While I approve of the arts, there are a lot of things I would be trying to save before some painting of a limp pocket watch or a Campbell soup can or something painted by a guy with only one ear. Apparently those high-level civilian and military functionaries plan to sell the artworks when they emerge from the underground bunker at M-WEOC—if there’s anyone left to sell them to.

Would you like to hear who else is included among the A-list to be evacuated to M-WEOC?

FEMA. That’s right, the Federal Emergency Management Agency, the same people who brought you those splendid recovery efforts for Katrina and more recently the devastating floods of Southeast Louisiana.

M-WEOC, it seems serves as FEMA’s center of operations.

If an enemy ever attacked this country, FEMA, with its unprecedented record of ineptitude, might be spared just so it could finish off what the bombing missed. Given its performance record, that scenario may be closer to the truth than we would like to believe.

A friend and regular reader of LouisianaVoice observed somewhat caustically, “If we have a nuclear attack or other disaster that takes most of the rest of us out. High-ranking FEMA officials will be among those saved. What a waste.”

The Baton Rouge Advocate’s REBEKAH ALLEN wrote on Tuesday (Dec. 12): “For the amount of money FEMA is spending on temporary mobile homes for flood victims, the federal agency could buy displaced residents modest houses in some parts of Baton Rouge.”

The basis on which she wrote that was a document provided to U.S. Rep. Garrett Graves which revealed that FEMA’s typical cost for the purchase, transport and installation of each FEMA trailer placed on the property of a flood victim is a cool $129,200.

If the “manufactured housing unit” (a FEMA euphemism for trailer but hey, a rose by any other name…) is placed in an existing commercial mobile home or travel trailer park, the cost of leasing the site pad increases the tab to $149,000 and if placed in FEMA designated group sites, then the price jumps to $170,000.

That’s for a living space of a whopping 980 square feet. My 2,300-square-foot home cost me less than $129 thou.

(And John Kennedy thinks the state has a spending problem.)

“You’re saying, ‘We may be slow, but at least we’re more expensive,’” Graves said.

Here’s the breakdown, according to Allen:

  • Cost of FEMA trailer: $62,500;
  • Installation: $23,000;
  • Maintenance: $15,400
  • Transportation: $5,000
  • FEMA’s administrative overhead cost: $23,000.

Tito Hernandez, FEMA’s federal coordinating officer (how’s that for a snappy title?), had a well-reasoned, logical explanation.

Of course he did.

The FEMA trailers meet strict safety standards set by the federal government.

Well, Tito, every doublewide mobile home sold on every commercial lot in America meets “strict safety standards” set by the federal government. “The FEMA unit is strong, it’s a higher quality, it’s more solid than many being sold commercially,” he said.

Sure they are, Tito. And we still remember those pieces of crap foisted off onto those wretched Katrina victims. Weren’t we also told then what a great deal those were?

Borrowing the mantra of former Wisconsin Democratic Sen. William Proxmire, Graves calls the money spent on the trailers the “fleecing of America, example no. 10,000.”

That same friend/reader that I alluded to earlier experienced his own FEMA nightmare when his 33-year-old rental trailer flooded in Central:

“We had little choice but to get a new one at 100 percent our expense or walk away from the property entirely. Why didn’t we have flood insurance you might well ask?  Even if we had, we would have gotten nothing because a 33-year-old trailer has no value. We replaced this old trailer with a brand-new, but smaller one (1,000 sf living area) – ordered it a week after the flood and it still is not ready for occupancy since we still don’t have it plumbed so there is no water.

“Everything about this has been a nightmare from permitting through trying to get people over there to do site prep, electrical, etc.  We are very lucky to have finally convinced the City of Central to give us a “temp to perm” electrical connection so the air conditioning could be installed last Thursday. I could go on and on and on, but to get to the cost:

“I had a slab poured, lot work done, including demolition of the old trailer, paid extra to have the new trailer elevated to 2 feet above the basic flood elevation, paid and engineer to do two flood elevation certificates during the permitting, have done extra work on the trailer, including adding two porches at a cost of $7,000 and doing other extras like fence repairs, putting in blinds, buying new hardware for the washer/dryer, etc. I project with all this, my total cost will be about $62,000.

“This whole FEMA thing is utterly and completely stupid. With all the extras I did that FEMA isn’t even doing, it cost me less than half what they paid for doing a piss-poor job of installing some trailers. And what are they going to do with them when they get them back in 18 months? FEMA is another of the many fine reasons people have absolutely no faith their government can do anything right. Everybody would have been a lot better off if FEMA had simply given them $129,000 and, based on the total costs, it would have probably cost taxpayers less and would certainly have been less hassle for everybody. Don’t you think somebody could rent a pretty nice place for $7,166.67 per month for the 18 months they are allegedly loaning people the ridiculous trailers for? I am disgusted and angry about this whole thing. I don’t know what the answer is at FEMA, but some ass-chewing and firing might help.”

But not to worry. When the next national disaster hits, our critical congressmen, generals and FEMA will be safely ensconced in that underground bunker at M-WEOC (with sufficient food and drink) while the rest of us kick into survival mode.

We can only hope FEMA has a better contingency plan for that disaster than it does for hurricanes and floods.

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Editor’s note: The following is a guest column written by James Finney, Ph.D., of Baton Rouge. This was first posted on his blog, Methodical, Musical Mathematician’s Musings, and we felt it was an important essay that addressed issues with the state’s flawed school voucher program. Rather than simply publishing a link to his post, Dr. Finney was gracious enough to allow us to re-post it in its entirety on LouisianaVoice. Dr. Finney is a math teacher with an interest in transparent and effective government.  He grew up in South Dakota but has lived in Baton Rouge for more than 20 years.

His observations should not be interpreted as a criticism of the Catholic Church but rather an objective look at how the state’s voucher program has been mismanaged and vouchers paid in disproportionate amounts to church-affiliated schools by the Louisiana Department of Education.

 

By James Finney, Ph.D.

Did the headline get your attention?  If so, that’s good. When I saw the details of voucher funding for 2014-15, I was startled at how much of the nearly $40 million in spending went to Catholic schools.

The total amount sent to the 131 voucher schools participating in the Student Scholarships for Educational Excellence program in 2014-15 was $39,486,798.20. This figure is reported in a spreadsheet I received from the Department of Education in response to a public record request.  Of that, approximately two-thirds ($26,819,434.44) went to the 76 participating schools that are affiliated with the New Orleans Archdiocese and the Dioceses of Shreveport, Alexandria, Baton Rouge, Houma-Thibodaux, Lafayette, and Lake Charles.

A defender of the voucher program might suggest that most of the private schools in the state are Catholic, so it makes sense that most of the vouchers would be used in Catholic schools. The evidence says otherwise. There are 412 nonpublic schools listed in the state’s 2015-16 School Directory (which I received incidental to another public record request). Of those, 190 are identified by the state as being Catholic. So the Catholic schools are fewer than half the nonpublic schools, but they account for two-thirds of the vouchers. There is no easy way to compare total enrollment (Catholic vs. non-Catholic private schools) since the state does not appear to collect or report private-school enrollment data.

As mentioned earlier, 76 of the 131 voucher schools are Catholic. Of the remaining 55, nearly half (25) have a school name containing the word “Christian” and nine have a name containing “Lutheran”, “Living Word”, “Bishop”, “Baptist”, “Adventist” or “Bible”. And there’s Jewish Community Day School.  So that leaves roughly 20 of the voucher schools that might be secular.  So much for the separation of Church and State.

It’s interesting to rank the voucher schools by total amount paid in 2014-15:  The top six schools account for more than $10 million, and the next 14 for more than another $10 million:

  • St. Mary’s Academy (Girls) (C), Orleans (417): $2,606,160
  • Hosanna Christian Academy (AG), EBR (390): $2,265,944
  • Resurrection of Our Lord School (C), Orleans (466): $2,103,286
  • Our Lady of Prompt Succor (C), Jefferson (208): $1,045,417
  • St. Louis King of France School (C), EBR (182): $1,021,094
  • 506087 Leo the Great School (C), Orleans (191): $1,016,667

Five of the most expensive voucher schools, and 17 of the top 20, are Catholic.  The non-Catholic schools among the top 20 are Hosanna Christian Academy (No. 2 above), Evangel Christian Academy in Caddo Parish (No. 16) and Riverside Academy in St. John the Baptist Parish (No. 20).

One of the voucher schools appears to be a public school: Park Vista Elementary School in Opelousas (St. Landry Parish). It would be interesting to know the story on that school’s participation in the program, and where the students are coming from. The state sent the Parish an average of somewhere around $7,760 each for 19 students, contributing $150,000 to the local system’s bottom line.  Compare that to the $5,570 that the state sent to St. Landry Parish Schools in Minimum Foundation Program (MFP) funding for each student who actually lived in St. Landry Parish.

Two of the schools that received vouchers are not even on the state’s list of nonpublic schools:  Walford School of New Orleans received $17,717, and McKinney-Byrd Academy in Shreveport received $3,566. If they aren’t on the state’s list of nonpublic schools, why did they receive voucher payments? In 2015-16, the SIHAF K12 Learning Academy joined the ranks of voucher schools not on the list of nonpublic schools, and in 2016-17, Weatherford Academy in Westwego will be allowed to offer up to six vouchers and Children’s College in Slidell will be allowed to offer one or two vouchers. Go figure.

State Superintendent of Education John White would like us to believe that at an average of around $5,500 each the vouchers saves the state a lot of money. There’s a flaw in that argument. The average per child state share of the MFP in 2014-15 was only $5,185.  So there might be a savings to local school districts, if those local districts had to educate fewer students with the same amount of local tax revenue. Unfortunately, there’s a huge loophole in the voucher program that allows students who have never (and probably would never) have been enrolled in a public school to get their private educations funded by the state. Maybe that’s why I can’t get a meaningful response to my request to the Department of Education in which I seek the records of how many voucher students had actually “escaped” public schools.

As an example of the fallacy of the vouchers-as-a-bargain-for-the-state argument, consider East Baton Rouge Parish Schools. In 2014-15, the state share of MFP was $4,165 per student. Of the 20 voucher schools within the district’s boundaries, the only school with an average voucher amount below $4165 was St. Francis Xavier School at $4,103.  At least five voucher schools charged the state over $8,000 per student. For two schools, Most Blessed Sacrament and Country Day School of Baton Rouge, both the average tuition per student and the number of students each quarter were (illegally?) redacted from the records supplied by the state, so there’s no way to know how much each school charged the taxpayers per student.

The highest tuition rate ($9,000) was charged by Prevailing Faith Christian Academy in Ouachita Parish for its 31 voucher students. It appears that the schools get to set the rate the state pays for an education over which the state exercises no oversight, as long as there are at least a few families willing to pay that amount out of their own pockets. With no effective state oversight, there is no way to tell just how good (or more likely how bad) a bargain the state is getting by funding private education.

Meanwhile only 91 schools are accepting applications for new voucher students in 2016-17. Perhaps many of the private schools have realized that mixing public money and private education is a bad idea all around.

F 17 of February 20 (voucher school status for 2016-17, and Q1 enrollment for 2015-16)

11 of February 20 – 2014-15 SEE Enrollment and Funding (2014-15 voucher spending)

2014-15-circular-no-1156a—final-budget-letter—march-2015  (Look at “Table 3 Levels 1&2” tab, in columns AP and AT.)

 

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“The petty thief is imprisoned but the big thief becomes a feudal lord.”

Zhuangzi

 

There it was, splashed across the Metro page of Tuesday’s Baton Rouge Advocate:

“OMV audit: More than $200,000 stolen”

The entire matter is heavily weighed down by irony but you’d never know it from reading the story.

It seems that a new audit of the Department of Public Safety and Corrections (DPS) has revealed that two employees of the Louisiana Office of Motor Vehicles (OMV) misappropriated more than $211,000 before being arrested.

The two, Heather Prather of Baker in East Baton Rouge Parish and Angelle Temple of Marksville in Avoyelles Parish were actually arrested in early 2015—nearly a year ago—and fired for felony theft, injuring public records and malfeasance in office.

 

“Steal a little and they throw you in jail. Steal a lot and then they make you king.”

Bob Dylan

 

“Upon investigation, OMV management determined that the OMV employees had diverted public funds for personal use and violated state laws,” according to the Legislative Auditor’s Office.

Apparently the two issued receipts to paying customers but then either altered, voided or simply did not post the transactions. There was no indication as to whether or not the two knew each other or if they conspired together or acted separately in misappropriating the funds.

And yes, $211,000 is a lot of money and nothing in this post should be interpreted as excusing the women’s actions.

But isn’t it odd that the media would give such prominence to this story while overlooking official misappropriation of public funds?

Take, for example, the lingering case of high ranking State Police official Jill Boudreaux and the unmet demand that she repay nearly $60,000 in money she received to which she was not entitled. That little matter is still unresolved after almost six years.

And then there is Bobby Jindal. He allowed the taxpayers of Louisiana to pick up the tab for the cost of more than $3 million for State Police security details. Those costs were incurred while he spent more than two-thirds of his final year in office campaigning out-of-state for the Republican presidential nomination. A reasonable person would assume his campaign would have paid for that protection since his travels had zero to do with his job as governor of Louisiana.

But few lately have accused Jindal of being reasonable. The cost of flights, taxis, auto rentals, lodging, laundry and meals cost Louisiana taxpayers more than $640,000 in addition to the salaries of state troopers assigned to his out-of-state security detail. None of that has been refunded by Jindal’s campaign.

 

“He who uses the office he owes to the voters wrongfully

and against them is a thief”

Jose Marti

Boudreaux, Undersecretary for DPS, which has management oversight responsibility for OMV, first said the office would consider a policy of no longer accepting cash as a safeguard against theft by employees.

Later, however, she and the Auditor’s Office agreed that OMV only needs a better system of controls over accepting cash. State Police public information officer Doug Cain said the goal of OMV was to continue to provide convenience to the customer while at the same time, assuring “due diligence to have accountability on the process.”

Due diligence appears to have been lacking in efforts to have Boudreaux repay the $59,000 she was paid as part of an early retirement incentive offered nearly six years ago.

In April of 2010, the Jindal administration, in an offer to implement across the board savings, made a one-time incentive package offer to various state agencies as a means to encourage state employees to take early retirement.

Handled properly, it appeared at the time—and still does appear—to have been an economical and compassionate way to nudge employees who wanted out but who could not afford to retire, into making the decision to walk away, thus reducing the number of state employees which in turn translated to long-term savings in salaries and benefits paid by the state.

On April 23 of that year, DPS Deputy Undersecretary Jill Boudreaux sent an email to all personnel informing them that the Department of Civil Service and the Louisiana State Police Commission had approved the retirement incentive as a “Layoff Avoidance Plan.”

In legal-speak, under the incentive eligible applicants would receive a payment of 50 percent of the savings realized by DPS for one year from the effective date of the employee’s retirement.

In simpler language, the incentive was simply 50 percent of the employee’s annual salary. If an employee making $50,000 per year, for example, was approved for the incentive, he or she would walk away with $25,000 in up-front payments, plus his or her regular retirement and the agency would save one-half of her salary from the date of retirement to the end of the fiscal year. The higher the salary, the higher the potential savings.

The program, offered to the first 20 DPS employees to sign up via an internet link on a specific date, was designed to save the state many times that amount over the long haul. If, for example, 20 employees, each making $50,000 a year, took advantage of the incentive, DPS theoretically would realize a savings of $1 million per year thereafter following the initial retirement year.

That formula, repeated in multiple agencies, could produce a savings of several million—not that much in terms of a $25 billion state budget, but a savings nonetheless.

The policy did come with one major caveat from the Department of Civil Service, however. Agencies were cautioned not to circumvent the program through the state’s obscure retire-rehire policy whereby several administrative personnel, the most notable being former Secretary of Higher Education Sally Clausen, have “retired,” only to be “rehired” a day or so later in order to reap a monetary windfall.

“We strongly recommend that agencies exercise caution in re-hiring an employee who has received a retirement incentive payment within the same budget unit until it can be clearly demonstrated that the projected savings have been realized,” the Civil Service communique said.

 

“A man with a briefcase can steal millions more than any man with a gun.”

Don Henley

 

Basically, to realize a savings under the early retirement incentive payout, an agency would have been required to wait at least a year before rehiring an employee who had retired under the program.

Boudreaux, by what many in DPS feel was more than mere happenstance, managed to be the first person to sign up on the date the internet link opened up for applications.

In Boudreaux’s case, her incentive payment was based on an annual salary of about $92,000 so her incentive payment was around $46,000. In addition, she was also entitled to payment of up to 300 hours of unused annual leave which came to another $13,000 or so for a total of about $59,000 in walk-around money.

Her retirement date was April 28 but the day before, on April 27, she double encumbered herself into the classified (Civil Service) Deputy Undersecretary position because another employee was promoted into her old position on April 26.

A double incumbency is when an employee is appointed to a position that is already occupied by an incumbent, in this case, Boudreaux’s successor. Double incumbencies are mostly used for smooth succession planning initiatives when the incumbent of a position (Boudreaux, in this case) is planning to retire, according to the Louisiana Department of Civil Service.

http://www.civilservice.louisiana.gov/files/HRHandbook/JobAid/5-Double%20Incumbency.pdf

Here’s the kicker: agencies are not required to report double incumbencies to the Civil Service Department if the separation or retirement will last for fewer than 30 days. And because State Civil Service is not required to fund double incumbencies, everything is conveniently kept in-house and away from public scrutiny.

On April 30, under the little-known retire-rehire policy, Boudreaux was rehired two days after her “retirement,” but this time at the higher paying position of Undersecretary, an unclassified, or appointive position.

What’s more, though she “retired” as Deputy Undersecretary on April 28, her “retirement” was inexplicably calculated based on the higher Undersecretary position’s salary, a position she did not assume until April 30—two days after her “retirement,” sources inside DPS told LouisianaVoice.

Following her maneuver, then-Commissioner of Administration Angelé Davis apparently saw through the ruse and reportedly ordered Boudreaux to repay her incentive payment as well as the payment for her 300 hours of annual leave, according to those same DPS sources.

It was about this time, however, that Davis left Gov. Bobby Jindal’s administration to take a position in the private sector. Paul Rainwater was named to succeed Davis on June 24, 2010, and the matter of Boudreaux’s payment quickly slipped through the cracks and was never repaid.

Granted, $59,000 is not a lot in the over scheme of things—especially with the state facing a budgetary shortfall of nearly $2 billion. But as the late Sen. Everette Dirksen said, “A million here and a million there and pretty soon you’re taking about real money.”

Well, no matter the amount, it’s real money.

Perhaps when Jay Dardenne takes over as the incoming Commissioner of Administration, he may wish to take another look at the manner in which Boudreaux took $59,000 in extra cash and then defied the directive by Davis to repay the money.

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